Ardagh Group said today it will spin off its metal packaging business through a merger with a listed blank-check firm backed by billionaire Alec Gores, in a deal that values the new company at $8.5 billion. 

The deal with Gores Holdings V will provide a total infusion of $3.4 billion to the spun-off company.

This will be financed by a combination of $2.3 billion of new debt, $600m from new investors and the capital raised in Gores Holding V's initial public offering of shares last year. 

Luxembourg-based global packaging group Ardagh operates 56 metal and glass production facilities in 12 countries, employing more than 16,000 people, according to its website. 

The company caters to beverage, food, pharmaceutical and personal care markets and lists brands including Heineken and Perrier as customers. 

Gores - the founder of private equity firm Gores Group - is one of the most prolific SPAC dealmakers in the US and has raised billions so far through multiple blank-check firms. 

SPACs, or blank-check firms, are shell companies that raise funds through an initial public offering to acquire a private company. 

For the company going public, it is an alternative route to public markets and has gained immense popularity among Wall Street investors in recent times. 

Oliver Graham, CEO of Ardagh Metal Beverage, will be CEO of AMP. 

Paul Coulson, Chairman and CEO of Ardagh, will serve as Chairman and Shaun Murphy, COO of Ardagh, will serve as Vice Chairman of the company following the closing of the deal. 

"Ardagh Metal Packaging is benefiting from long-term megatrends, including sustainability and changing consumer preferences," Paul Coulson, Chairman and CEO of Ardagh, said.

"The business has grown significantly since our acquisition of the metal beverage packaging business in 2016 and we have a clear roadmap that we believe will lead us to more than double adjusted EBITDA by 2024, as we invest in support of our customers' growth," Mr Coulson said. 

"We are delighted to partner with Gores Holdings V to create a NYSE-listed pure-play beverage can business of scale with impeccable ESG credentials, and we intend to remain a committed, long-term majority shareholder of AMP as it continues its growth journey," he added.

Ardagh has its origins in the Irish Glass Bottle Company, but no longer has any manufacturing facilities here.